Internal Audit Outsourcing in UAE

Reema Muneer

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HLB HAMT - Accounting Firm in UAE

Phone:- +971 4 327 7775
WhatsApp:- +971 56 219 1607
Mobile:- +971 55 807 4568
Email:- dubai@hlbhamt.com

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    Introduction to Internal Auditing

    An organization’s internal audit department has as its main goals assessing and enhancing the efficiency of internal controls, risk management, and governance procedures. It is a separate, impartial operation created to offer consulting and assurance services to the organization.

    Assessing the efficacy and sufficiency of internal controls and risk management systems is the main goal of internal audit. Internal auditors look at and assess different aspects of the company, including its:

    • operations
    • financial systems
    • adherence to internal rules and procedures, and
    • compliance with laws and regulations.

    They seek to pinpoint operational inefficiencies, possible risk factors, and growth prospects.

    Key aspects of Internal Audit

    • Independence

      It is important for internal auditors to be impartial towards the areas they are auditing. This independence guarantees their evaluations’ objectivity and impartiality and enables them to offer unbiased evaluations of controls and procedures.

    • Scope of Work

      The objectives, hazards, and regulatory requirements of the organisation are used to set the internal audit’s job scope. It includes a wide variety of tasks, including financial controls, operational procedures, adherence to legal and regulatory requirements, information technology systems, and strategic initiatives.

    • Risk Assessment

      Risks inside the organisation are evaluated and prioritised by internal auditors. This entails identifying possible hazards, assessing their potential effects, and figuring out how likely it is that they will occur. Internal auditors concentrate their attention on the areas that are most important to the organization’s goals with the use of the risk assessment.

    • Audit Planning

      Internal auditors develop a comprehensive audit plan based on the identified risks and objectives. The plan outlines the scope, objectives, methodology, and timelines for the audits to be conducted. It serves as a roadmap for executing audit engagements effectively and efficiently.

    • Testing and Evaluation

      To evaluate the efficiency and effectiveness of controls and processes, internal auditors conduct testing and assessment methods.

      Analysing data, conducting interviews, reviewing paperwork, and doing sample testing are some of the methods used by internal auditors. The goal is to evaluate if controls are correctly designed and working to reduce risks.

    • Reporting

      After completing audits, internal auditors communicate their findings, observations, and recommendations to management and relevant stakeholders. Audit reports highlight areas of strength, weaknesses, and opportunities for improvement. They also provide recommendations for enhancing controls, mitigating risks, and improving operational efficiency.

    • Follow-up and Monitoring

      To make sure that management has taken the proper action, internal auditors monitor the execution of their recommendations. They could carry out follow-up audits or evaluations to gauge how well the adopted measures are working. This constant observation enables us to make sure that problems discovered during audits are properly handled.

    What is outsourcing of Internal Audit services?

    Outsourcing of services refers to the practice of contracting and delegating specific tasks, functions, or processes to an external service provider. This allows organizations to leverage the expertise and resources of external entities to perform certain activities, rather than handling them internally.

    Outsourcing Internal Audit Services in UAE: An Overview

    In the United Arab Emirates (UAE), outsourcing of internal audit services refers to the practice of engaging an external firm or service provider to conduct internal audit activities on behalf of an organization. Instead of establishing an in-house internal audit department, organizations opt to outsource this function to a specialized external firm.

    Outsourcing internal audit services in the UAE offers several potential benefits, such as:

    • Expertise

      Through outsourcing, businesses may access the specialised knowledge and abilities of qualified auditors with expertise in a range of fields and sectors. These outside specialists can offer a fresh perspective or viewpoint and in-depth knowledge of best practices in internal auditing.

    • Cost Efficiency

      Compared to keeping an internal audit department in-house, outsourcing might be a more affordable option. Companies can cut expenses connected with internal teams’ hiring, training, compensation, perks, and infrastructure. The costs of outsourcing are frequently more adaptable and predictable since they depend on the nature of the task.

    • Flexibility and Scalability

      Internal audit services may be scaled according to the demands of the organisation when they are outsourced. The external service provider may set aside extra resources during times of heightened audit activity to fulfil the demand. On the other hand, organisations can change the amount of outsourcing as audit needs drop.

    • Access to Technology and Tools

      External audit firms often possess advanced audit technology and tools that may be cost-prohibitive for an organization to acquire on its own. By outsourcing, organizations can leverage these resources without the need for significant upfront investments.

    • Independence and Objectivity

      The auditing process may become more impartial and independent by outsourcing internal audit services. External auditors can offer a more objective assessment of controls, risks, and governance practises since they present an unbiased viewpoint free from potential conflicts of interest.

    • Compliance and Regulatory Expertise

      UAE external auditors are knowledgeable about regional laws, rules, and corporate governance norms. Organisations may gain from the experience and direction of experts who are familiar with the unique compliance standards in the UAE by outsourcing internal audit services.

    While outsourcing internal audit services in the UAE organizations should carefully consider factors such as:

    • reputation and experience of the service provider,
    • confidentiality and data security measures,
    • service-level agreements, and
    • the ability to maintain effective communication and coordination between the external auditors and internal stakeholders.

    Conclusion

    To conclude we can say that outsourcing internal audit services in the UAE can be a strategic choice for organizations seeking to optimize their resources and gain access to specialized expertise.

    It offers;

    • cost-efficiency
    • flexibility
    • independence, and
    • compliance advantages.

    However, careful consideration of service providers, confidentiality, and effective communication is essential to ensure a successful and productive outsourcing arrangement.

    HLB HAMT offers internal audit services in UAE with:

    • We provide management advise on how to create a safe and efficient internal control environment.
    • We highlight the risk and the applicable recommendation for operational and financial issues.
    • Aiding to match business goals with operational strategy and risk performance indicators.
    • Reviewing and analysing key structures, systems and practises that enable sound corporate governance.
    • Assisting management for developing and deploying efficient and focused business practices.

     

     

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    Varun R Chandra
    Varun R Chandra
    07:38 25 Apr 21
    HLB Hamt is highly recommended! They have the quality of services that would satisfy your needs. I'm glad I found them.
    Giuseppe Assi
    Giuseppe Assi
    06:20 31 Jan 21
    I HAD A GOOD EXPERIENCE WITH HLB HAMT DUBAI. THEY HAVE A VERY PROFESSIONAL TEAM, GOOD QUALITY OF SERVICES, GOOD VALUE... FOR PRICE.I RECOMMEND THIS COMPANY.read more
    Mohamed Sheriff
    Mohamed Sheriff
    16:16 28 Jun 20
    Experience with HLB Hamt in audit experience is great pleasure. They deploy well qualified accounts team for audits.... And the amount of checking they perform give the management of the company confidence that internal controls are well in place. We are glad to see they have high standard of audit practices.read more
    218141 JOSEPH THOMAS
    218141 JOSEPH THOMAS
    16:20 23 Jun 20
    Professionally managed firm with commitment to the engagements taken. My company and its group are assigning our... requirements for last 12 years to HLB and we don’t have any negative remarks on any assignments.read more
    PMI
    PMI
    07:14 23 Jun 20
    In my opinion, HLB Hamt is one of the best professional firms in UAE after big4. Excellent client service, professional... and competent staff and timely delivery are their strength. Over the years they have developed the infrastructure and skill set to handle multiple verticals ie, audit, tax services, consulting, IT support etc.Wishing HLB Hamt team all the very best.read more
    RAVI CHOKSI
    RAVI CHOKSI
    08:28 21 Jun 20
    Thank you Team HLB hamt...Your internal auditing team put the good amount of time and inputs in helping the... organisation making considerable improvements throughout the organisational working structure and helps in building the better business.Thanks.read more
    Maharajan Subramaniam
    Maharajan Subramaniam
    18:17 06 Jun 20
    High-Performing IT Teams, I'm impressed with the knowledge level of their deputed staff, audit procedures, and... checklist adopted. Mr. Vimal especially understand the requirement and provide solution not only technical feasibility and also considered budgeting. We’re confident in their abilities.read more
    Mohammed L
    Mohammed L
    08:07 05 Jun 20
    We have been working closely with them on payroll services for quite sometime.They provide very professional... services,experts in domain and excellent support. Would recommend them.Cheers.read more
    ROY ROSHAN VIVIAN
    ROY ROSHAN VIVIAN
    06:32 04 Jun 20
    Very professional team. Vimal has always given us good solution advice for various Software and IT Infra projects. We... are very Extremely satisfied working with him and his team. Wishing them success.read more
    Basil Daniells
    Basil Daniells
    05:55 03 Jun 20
    I have worked with HLB as a partner of Sage for about 2 years, they were dedicated to the success of the partnership... and kept aligned with the business plan that was agreed between our two companies. They are always ready to go the extra mile for a customer and don’t shy away from challenging circumstances. Keep up the good work and wish you all the success in the future.read more
    Amar Kashyap
    Amar Kashyap
    19:28 02 Jun 20
    Team of well qualified and organised professionals. Their reports are not based on numbers first they will understand... their client and their business. They are highly recommended and trust worthy.read more
    Radz de Jesus
    Radz de Jesus
    16:03 02 Jun 20
    We're glad to have found HLB Hamt to conduct the IT audit and risk assessment for our organization. We have learned a... lot from their team during that first project. And since then, we've continued to be in touch with them. Mr. Vimal especially is very good at presenting technical concepts in simple yet interesting ways that non-IT and business people alike would easily catch. We are very happy with the professionalism and quality of service they provide. They leave their clients nothing short of satisfied. Highly recommended.read more
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